We propose an ex ante measure of analysts' production of private information (PPI) based on the correlations between analysts' forecast revisions and prior stock price changes. We validate this measure by examining whether analysts with lower correlations (higher PPI) provide more information...

We examine the sophistication of analysts' cash flow forecasts to better understand what accrual adjustments, if any, analysts make when forecasting cash flows. As a preliminary step, we first demonstrate that prior empirical tests used to evaluate the sophistication of analysts' cash flow...

Givoly, Hayn, and Lehavy (2013) dispute Call, Chen, and Tong's (2013) conclusion that analysts' cash flow forecasts represent sophisticated extensions of their earnings forecasts. Our primary purpose is to highlight the fundamental disagreement that leads to the divergent views on the...